Author: wisenlucky Date: 9/6/01 7:56 AM Number: 31820 I don't think the first comment above relates to getting in or out of the market. Part of an effective asset allocation is a periodic rebalancing. If you try to rebalance a portfolio in a taxable account, you will suffer substantial tax consequences. If you then choose not to rebalance, you could suffer loss of returns if your allocation gets out of whack.

Exactly right!! I wasn't clear in my original statement.

I also don't believe that anyone can time the market, but you surely need to rebalance regularly, and you may be hesitant to do that if you will be hit by big capital gains taxes.